Is This Correct?

Yes.

The gain does not have to be "all the way up" for the amplifier to output full power. All the gain does is determine how much voltage input is needed for the amplifier to output full power.

For example, if your gain has a maximum (all the way down) input voltage of 4V on the gain dial, and a minimum (all the way up) input voltage on the gain dial of .2V, then with the gain turned all the way down it would require 4V of input signal from the headunit for the amplifier to output full power. If the gain is turned all the way up, then it would only need .2V to output full power.

 
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Wkbdkid

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